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India Asset Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 170 Pages
  • March 2023
  • Region: India
  • Mordor Intelligence
  • ID: 5529325
UP TO OFF until Sep 30th 2023
The India Asset Management Market is about USD 865 billion in the current year and is expected to register a CAGR of 14% over the forecast period.

Despite the poor economic situation that began in 2020 because of the pandemic, the Indian investment market still managed to close the decade on a noteworthy record. Owing to Covid-19, there has been a swift transformation into a more technology-driven world, leading to soaring investments in various sectors, such as education technology, financial services, and life sciences, over the traditional sectors of private equity (PE)/venture capital (VC) investors such as infrastructure and real estate, among others.

In 2022, the AUM of the Indian mutual fund industry stood at INR 37.22 trillion (USD 449 billion). Although individual investors hold 55% of industry assets, institutional investors account for 45%. Corporates account for 95%, and the rest is divided between Indian and foreign institutions and banks. The net outflows under the FPI route are around INR 852 billion (USD 10.3 billion) as of 15 June 2022, out of which around INR 126 billion (USD 1.52 billion) outflows are in debt.

The government, in its capacity as an anchor investor, has established a collaborative investment platform, namely the National Investment and Infrastructure Fund, for international and Indian investors looking for investment opportunities in infrastructure and other high-growth sectors of the country, which includes a fund of funds program that has emerged as a significant domestic LP. Further, the Small Industries Development Bank of India has been investing in various AIFs to promote and accelerate the growth of start-ups and micro enterprises, as well as SMEs in India.

SEBI is increasing its supervision on AIFs given the pace of growth clocked by the industry, to ensure that AIFs are being properly managed and operated and that there is no mis-selling. There is also an annual PPM audit requirement, and all filings with SEBI for seeking approval of AIFs are now required to be done through a merchant banker.

India Asset Management Market Trends

Increase in Private Equity/Venture Capital Investment Activities is Driving the Market

Total PE/VC investment activity in 2021 was at USD 77.1 billion, a 62% increase over 2020. The PE asset class (excluding infrastructure and real estate) demonstrated a growth of 79%. Although three sectors - technology USD 16.3 billion, e-commerce USD 15.9 billion, and financial services USD 11.7 billion accounted for 57% of the total PE/VC investments by value, many sectors, such as media and entertainment, education, pharmaceuticals, and healthcare, showed significant growth. For the first time, 14 sectors notched up PE/VC investments exceeding USD 1 billion.

The number of active PE funds continued to grow in 2020, with global and domestic general partners (GPs) making up the bulk at 60%, followed by limited partners (LPs) (i.e., institutional investors and government affiliates) and corporates. As more funds increase focus on India, over 70% of investors concur that global PE firms and LPs/sovereign wealth funds investing directly are the biggest competitive threat. Growing investor confidence in the Indian market is visible because of the increasing penetration of major GPs and LPs into India's deal value.

High Growth Potential for Mutual Fund Industry in India is Driving the Market

In 2022, it was estimated that there would be around 1.88 crore (18.8 million) registered mutual fund investors in India as against 1.86 crore (18.6 million) households with an annual income of more than INR 10 lakh (USD 12,089) per annum. The number of mutual funds being offered, compared to previous years, has also increased exponentially.

Despite the competition among mutual funds, which has increased manifold over the years, their performance has been consistently good, and investors have benefitted immensely. The industry has grown rapidly over the last few years, with a growth rate of almost 40% per year. The main reason for this growth is investors' increased demand for financial products. This has led to an increase in the number of people investing their money in mutual funds, which have been able to meet this demand.

India Asset Management Market Competitor Analysis

The report covers the major players operating in the India Asset Management Market. The market studied presents opportunities for growth during the forecast period, which is expected to drive the market competition further. India's Asset Management market is consolidated as top players hold the major market share, including ICICI, HDFC, and Aditya Birla, among others.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Various Regulatory Trends Shaping Asset Management Market in India
4.6 Insights on Impact of Technology and Innovation in Operation in Asset Management
4.7 Insights on Performance of Asset Managers in India
4.8 Impact of COVID-19 on the Market
5.1 By Client Type
5.1.1 Retail
5.1.2 Pension Fund
5.1.3 Insurance Companies
5.1.4 Banks
5.1.5 Other Institutions
5.2 By Asset Class
5.2.1 Equity
5.2.2 Fixed Income
5.2.3 Cash/Money Market
5.2.4 Alternative Investments
5.2.5 Other Asset Classes
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 SBI Mutual Fund
6.2.2 HDFC AMC
6.2.3 ICICI Pru AMC
6.2.4 Nippon AMC
6.2.5 Axis AMC
6.2.6 DSP BlackRock
6.2.7 Kotak AMC
6.2.8 Tata AMC
6.2.9 Franklin Templeton
6.2.10 Aditya Birla Sunlife
6.2.11 L&T Mutual Fund*

Companies Mentioned

A selection of companies mentioned in this report includes:

  • SBI Mutual Fund
  • Nippon AMC
  • Axis AMC
  • DSP BlackRock
  • Kotak AMC
  • Tata AMC
  • Franklin Templeton
  • Aditya Birla Sunlife
  • L&T Mutual Fund